A lawsuit doesn't mean you've lost. It means you have a window to respond, and what you do in that window matters more than almost anything else. Below are the steps in the order they usually count — starting with the mistake that sinks most people. This page is informational, not legal advice.
Don't ignore the summons
The number one reason people lose these cases is simple: they do nothing. If you ignore the summons, the court can enter a default judgment — the creditor wins automatically, without ever proving you owe the money or how much. A judgment is far harder to undo than a lawsuit is to answer, and it can open the door to wage garnishment, a bank levy, or a lien. Even if the debt is genuinely yours, showing up preserves every option below. The Consumer Financial Protection Bureau (CFPB) is direct about this: respond by your deadline.
Respond by the deadline (file an answer)
Your summons states a deadline to file a written answer with the court — commonly 20 to 30 days, but it varies by state and court. The answer is where you respond to each claim and raise any defenses (you don't admit anything by filing it). Many courts publish self-help forms and instructions. If the deadline is close, contact the court clerk or a legal-aid office immediately — and keep proof of what you filed.
Verify the debt is yours and within the statute of limitations
Don't assume the lawsuit is accurate. Check that the amount is right, that the plaintiff actually owns the debt (old credit card debts are often sold to debt buyers), and that you were properly served. Then check the statute of limitations — the time limit a creditor has to sue. It varies by state and is often three to six years. If the debt is time-barred, that can be a complete defense, but you generally must raise it in your answer. The Federal Trade Commission (FTC) notes that even partial payment can sometimes restart the clock, so confirm the facts before acting.
Options: settle, payment plan, or defend
Once you've answered, you typically have three paths. Settle: many creditors accept a reduced lump sum or structured payoff rather than litigate, and settlement is possible before — and sometimes after — judgment. Payment plan: you may negotiate affordable installments. Defend: if the debt isn't yours, is time-barred, or the plaintiff can't prove ownership, you may beat the case. For unsecured balances of about $7,500 or more, a debt settlement program can negotiate on your behalf — fees typically run 15–25% only as debts settle, with no upfront fees. Settlement isn't guaranteed, can hurt your credit, applies only to unsecured debt, and forgiven amounts over $600 may be reported to the IRS on a 1099-C. Always get terms in writing.
When to get a lawyer or legal aid
If the amount is large, the case is complex, or you suspect a defense, talk to a professional. Many people qualify for free help through a local legal aid office, and some consumer attorneys offer low-cost consultations. A lawyer can catch improper service, the wrong plaintiff, or a time-barred debt — and can negotiate from a stronger position. Whatever you decide, reach out before your answer deadline; the earlier you act, the more options stay open.